StarHub - Phillip Securities 2024-05-16: Mobile Competition Intensifying

StarHub - Mobile Competition Intensifying

Published:
StarHub (SGX:CC3) | SGinvestors.ioStarHub (SGX:CC3)
  • StarHub (SGX:CC3)'s 1Q24 results were within expectations and management full-year guidance. FY24 revenue and EBITDA were 23%/22% of our FY24 estimates.
  • Service EBITDA was up 0.7% y-o-y to S$108.4mil excluding D’Crypt which was disposed of in February 2024. Earnings were pulled down by a contraction in mobile and entertainment revenue.
  • - Read this at SGinvestors.io -
  • Maintain ACCUMULATE with an unchanged StarHub target price of S$1.29.

The Positives

Strong cybersecurity revenue.

  • Cybersecurity expanded 37% y-o-y to S$73mil. Excluding D’Crypt, Ensign's revenue would have jumped 54% to S$64.7mil. The surge in revenue was due to project delivery, and 1Q is typically weak on a seasonal basis.
  • - Read this at SGinvestors.io -

The Negative

Weakness in mobile APRU.

  • StarHub's mobile revenue declined 4.5% to S$145mil. The large drag in revenue stems from lower postpaid ARPU and competition.
  • Apart from competition, excess data and voice usage charges have been falling as packages enjoy higher bandwidth.

Outlook

  • Read more at SGinvestors.io.




Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.




Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-05-16



Read also Phillip's most recent report:
2024-08-19 StarHub - Service Revenue Stalling.

Price targets by 3 other brokers at StarHub Target Prices.

Listing of research reports at StarHub Analyst Reports.

Relevant links:
StarHub Share Price History,
StarHub Announcements,
StarHub Dividends & Corporate Actions,
StarHub News Articles





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